Finance heavyweights recently shared their lessons from the downturn at a Roundtable discussion that addressed strategies for future business success. The roundtable brought together ten finance chiefs from global and local corporations, from a range of industries including property, automotive, electronics, retail and fast-moving consumer goods.
All agreed that finance needed to make a swift move from focusing on the back office to being involved in the frontline. Recruiting was a big theme with most agreeing that a recession should not necessarily halt hiring for firms seeking growth post downturn. Andrew Morris, Director, Robert Half Hong Kong commented on this point, noting that the best people in a recessionary market are those still with jobs. “Smart managers will always be on the lookout for candidates who can help to improve their business. Most strategic positions are very often exempted from corporate headcount freezes,” added Karl Davies, Finance Vice President, Avery Dennison’s Retail Information Services, Asia.
Participants agreed that an interesting outcome of the economic situation has been the number of temporary and contract roles currently available in the market. “Temporary and contract employment is a strong solution to maintaining employees’ satisfaction and a positive corporate culture with a company rather than successive hiring and firing,” explained David Jones, Managing Director, Asia Pacific, Robert Half International. “Before, many people in Hong Kong would not consider a temporary position, but now it seems that professionals would rather start as a temporary hire at a great company than as a permanent hire in a company that they would have not normally considered before the recession.”
It was noted that quick and fast corporate growth as seen in Asia in recent years can often lead to massive financial inefficiencies that don’t come to light until a recession, possibly a reason why company reorganisation and restructuring has only taken place since the slowdown. All participants reiterated that the role of the CFO has become higher profile within an organisation and is receiving more attention from the board and the CEO since the downturn.
A key conclusion was also that senior finance personnel have a responsibility to understand the frontline business operations so they can ensure that cost efficiencies are in place. They also need to train and support staff at every level and department within the organisation in order to ensure that everyone is educated about financial accountability. The importance of loyalty and staff retention was a theme that echoed strongly throughout the discussions. “You can’t assume your employees are loyal when you’re in a recession,” pointed out Chew Fook Aun, Chief Financial , Esprit Holdings. “It’s only natural that when the economy begins to pick up again, attrition rates are going to increase and corporations need to prepare for that.”
Engaging employees takes a lot more than a high salary in this new business era, and needs to be tailored to the individual’s goals and values. “Fuel employees’ passion, help grow their jobs into promising careers, and build succession plans,” noted Karl Davies, Vice President of Finance, Retail Information Services Asia, Avery Dennison. “That in itself will help to sustain retention, and is fundamental to having a steady pipeline of promising talents in the organisation.”
A common theme was the agreement that the Hong Kong market is especially transient, and that as the city starts to move into its post-recessionary stage, important measures have to be taken. Jon Kennedy, Chief Financial Officer of PPG, for example, emphasised the value of strongly implementing retention strategies before the market comes back. “It’s important to identify and select the top 25% of employees most critical to your company and recognise and reward their achievements,” he explained.
All were in agreement that the recession has been an awakening for Generation Y employees who have become more realistic in their career expectations and more flexible in their demands. Participants also noted that the next generation of employees are being much more conservative about their career options and are focusing on traditional professions such as law and banking and are not opting to pursue disciplines that are now seen as unstable such as investment banking and fund management. Robert Li, Chief Financial Officer, Hallmark concluded: “There has been a philosophical change in the average employees’ outlook. The recession has caused people to re-evaluate their career options and strategies, and it’s no longer only about salary but about stability, career promise and a company’s profitability.”
Paul Arkwright
Publisher
